INTRA-TERM EXAM SPRING SESSION 2023
INTRA-TERM EXAM SPRING SESSION 2023
School of Law
To be released to Students on Friday 11:59PM 1 September 2023
STUDENT SURNAME: Insert
STUDENT FIRST NAME: Insert
STUDENT ID: insert
UNIT NAME: Self-managed Superannuation and Trusts
UNIT NUMBER: 3067
NUMBER OF QUESTIONS: 2 questions
TIME AVAILABLE: It should take you two (2) hours, but you have the period from Friday 11:59pm 1/9/23 to Sunday 11:59pm 3/9/23 to complete the examination.
VALUE OF QUESTIONS: This assessment is worth twenty (25) marks.
Question 1 is worth 12.5 marks and Question 2 is worth 12.5 marks.
ANSWERING QUESTIONS: Answer all questions in this Word document.
Note: type your answers into a copy of this word document and submit in Turnitin by 11:59pm 3 September 2023. Penalties will apply for late delivery.
LECTURER/UNIT COORDINATOR: Dr William A.J Higgs
MATERIALS: Open Book. Any material can be used. Calculators permitted.
THERE SHALL BE NO COLLABORATION NOR CONFERRING WITH OTHER STUDENTS. IF YOU SPEAK WITH ANY OTHER STUDENT ABOUT OR IN CONNECTION WITH THIS EXAM YOU WILL, INTER ALIA, RECEIVE A MARK OF ZERO. FREQUENTLY, I AM INFORMED OF INCIDENTS OF COLLABORATION AND CONFERRING BY STUDENTS. ANY ACTS OF CONFERRING WILL BE INVESTIGATED.
Question 1
Advise the trustees on the following scenario? (12.5 marks)
Issue 1
Janet, Paul, William, Tran, Chen and Hugui propose to become members of Prosperous SMSF. They each are employed and have the following salaries (not including super guarantee)
Salary (no SG)
Janet $82,300.00
Paul $87,500.00
William $110,750.00
Tran $145,863.00
Chen $201,400.00
Hugui $191,236.00
Assume the SG rate is 11% and the max concessional is $27,500 for the 2023-2024 year. No more than 6 members in SMSFs.
Issue 1
What is the maximum amount each member could contribute in Concessional contributions this year (assuming no available concessional rollovers)? (1/2 mark each correct answer)
Name Concessional amount
Janet
Paul
William
Tran
Chen
Hugui
Issue 2 (3 marks)
Lets say the members agree to establish a corporate trustee and establish the Prosperous Fund, advise Chen on what needs to be done to establish the Prosperous Fund. Complete the blanks below.
Sign a ___________ deed
Set up a __________
Appoint a ___________
Issue 3 (2 marks)
Paul contributed $20,000 in concessional contributions this year. Please comment?
Issue 4 (2 marks)
Hugui wants his friend, Bob, to become a member of the Prosperous SMSF. All members are keen to welcome Bob. Please comment?
Issue 5 (2.5 marks)
Advise the members on the advantages and disadvantages of appointing a corporate trustee?
Note: In your answers to the questions below refer to the relevant provision of the Superannuation Industry (Supervision) Act 1993 (the Act) and explain how those provisions are relevant to your answer.
Question 2
[Issues 1]
The Van Higgs Hass self-managed superannuation fund was registered as a self-managed superannuation fund on 1 July 2021 (the Fund). Mr and Mrs Hass and their son Avocado (16 years old) were the only members of the Fund. Mr and Mrs Hass are the only trustees of the Fund. At one time during the year, for no apparent reason, Mr Hass was the only trustee of the Fund.
[Issues 2]
Between at least 1 July 2021 and May 2022 Mr and Mrs Hass carried on a plum business in Queensland. During this period, the business suffered financial difficulties. Mr and Mrs Hass became bankrupt on their petitions in May 2022 as a result of personal debts incurred in the carrying on of the avocado business.
[Issues 3]
Between 1 and 3 July 2021 the Fund was capitalised by rollovers from other complying superannuation funds, being Lula Super, Maluma Super and Reed Fund. The following amounts were deposited into the Funds bank account: $35,000; $40,000 and $60,000.
[Issues 4]
On 4 July 2021 Mr and Mrs Hass each contributed $15,000 as a concessional contribution. The maximum concessional amount for that year was $27,500. Mr Hass earned $145,000 (including 10.5% SG) and Mrs Hass earned $75,000 (including 11% SG) in that financial year. On 14 July 2021, Mrs Hass tipped in an additional $6,000. Mrs Hass forgot to sign her Trustee Declaration.
Note: In your answers to the questions below refer to the relevant provision of the Superannuation Industry (Supervision) Act 1993 (the Act) and explain how those provisions are relevant to your answer.
2A- Advise the trustees whether they have breached any rules imposed by the Act and specifically which? (6.5 marks)
Write your answer below for Issue 1 only
[Issues 1]
Write your answer below for Issue 2 only
[Issues 2]
Write your answer below for Issue 3 only
[Issues 3]
Write your answer below for Issue 4 only
[Issues 4]
2B - Advise Mrs Has whether she has breached her duty as trustee, making specific reference to her breaches (6 marks)
Insert answer here
THE END
